PNFPP - Pinnacle Financial Partners Inc. (PNFP) Q2 2024 Earnings Call Transcript

2024-07-17 13:25:29 ET

Pinnacle Financial Partners, Inc. (PNFP)

Q2 2024 Earnings Conference Call

July 17, 2024 09:30 AM ET

Company Participants

Terry Turner - Chief Executive Officer

Harold Carpenter - Chief Financial Officer

Conference Call Participants

Brett Rabatin - Hovde Group

Steven Alexopoulos - JPMorgan

Jared Shaw - Barclays Capital

Brandon King - Truist

Catherine Mealor - KBW

Timur Braziler - Wells Fargo

Stephen Scouten - Piper Sandler

Russell Gunther - Stephens

Zach Westerlind - UBS

Brian Martin - Janney

Presentation

Operator

Good morning, everyone, and welcome to the Pinnacle Financial Partners Second Quarter 2024 Earnings Call. Hosting the call today from Pinnacle Financial Partners is Mr. Terry Turner, Chief Executive Officer and Mr. Harold Carpenter, Chief Financial Officer. Please note Pinnacle's earnings release and this morning's presentation are available on the Investor Relations page of their website at www.pnfp.com. Today's call is being recorded and will be available for replay on Pinnacle Financial's web site for the next 90 days. At this time, all participants have been placed on a listen-only mode. The floor will be opened for your questions following the presentation. [Operator Instructions]

During this presentation, we may make comments, which may constitute forward-looking statements. All forward-looking statements are subject to risks, uncertainties and other facts that may cause actual results, performance or achievements of Pinnacle Financial to differ materially from any results expressed or implied by such forward-looking statements. Many of such factors are beyond Pinnacle Financial's ability to control or predict. And listeners are cautioned not to put undue reliance on such forward-looking statements.

A more detailed description of these and other risks is contained in Pinnacle Financial's annual report on Form 10-K for the year ended December 31, 2023, and its subsequently filed quarterly reports. Pinnacle Financial disclaims any obligation to update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise.

In addition, these remarks may include certain non-GAAP financial measures as defined by SEC Regulation G, a presentation of the most directly comparable GAAP financial measures and the reconciliation of the non-GAAP measures to the comparable GAAP measures will be available on Pinnacle Financial's web site at www.pnfp.com.

With that, I am now going to turn the presentation over to Mr. Terry Turner, Pinnacle’s President and CEO.

Terry Turner

Thank you, Matt. Hopefully, everybody knows we're going to start with this snapshot. Our primary objective here is total shareholder return. And we believe these are the best metrics to ensure we get that done. As always, we begin with the GAAP measures, but for me in quarters like this where there's a lot of noise, the non-GAAP measures are perhaps more revealing. This quarter, our treasury management team here did some extraordinary work, in my opinion, to reposition our securities book, which of course creates a loss on the sale of securities in this period, but provides a meaningful lift to our ongoing revenue and earnings run rates with what we expect to be a slightly better than three year payback. And it increases both tangible book value and risk based capital at the same time, a really elegant and value creating strategy. ...

For further details see: